July 5, 2021 (MLN): The total debt of the Central Government during the month of May 2021 surged by Rs3.508trillion or around 10.17% YoY to stand at Rs37.997tr when compared to Rs34.489tr recorded in May 2020.
On a monthly basis, the central government debt increased by 2.48% against Rs37.078tr reported in April 2021.
The data released by the State Bank of Pakistan (SBP) shows that the larger portion of the debt was domestic, whereas the remaining was external. The Central Government Domestic Debt amounted to Rs26.065tr during the month, signifying a growth of around 10.86% YoY, comprising of Rs19.378tr long term debt and Rs6.662tr short term debt.
By the end of May 2021, the government’s long-term debt escalated by approximately 11% when compared to Rs17.460tr at the end of May’20 while it witnessed a meager increase of 1.08% on monthly basis. It is mainly due to the government’s decision to increase the maturity period of debt through converting its short-term borrowing from central bank to long-term debt.
Meanwhile, the short-term debt surged by 10.07% YoY while on monthly basis, it inflated by 8.33% to stand at Rs6.66tr.
Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for Rs14.32tr, and Saving Schemes accounted for Rs3.51tr. While in the short-term domestic debt, Market Treasury Bills (MTBs) amounted to Rs6.65tr.
A breakup of the Central Government External Debt shows that nearly Rs11.81tr came from long-term loans while Rs121.6billion came from short-term loans.
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